LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 71 HLS 201ES 109
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 26, 2020 7:48 AM Author: DUPLESSIS
Dept./Agy.: Publicly Owned Healthcare Facilities
Subject: Provides for a death benefit for certain public employees Analyst: Alan M. Boxberger
FUNDS/FUNDING RE INCREASE GF EX See Note Page 1 of 1
Provides for a death benefit for certain public employees who die from COVID-19 (Item #11)
Proposed law provides for the payment of a death benefit to any employee of a publicly owned healthcare facility in Louisiana who:
reported for work at an eligible facility after March 1, 2020, contracted COVID-19 within 45 days after a day he reported for work as a
direct patient care provider, died prior to June 5, 2020, and COVID-19 caused or contributed to the death; provides that the benefit be
payable to: the surviving spouse of the employee, the surviving child or children if the employee had no surviving spouse, or the
employee’s estate; provides that the amount of the benefit is three times the compensation received by the employee from the public
healthcare facility in his final year of employment, not to exceed one hundred fifty thousand dollars per employee; creates a special fund
in the treasury from which monies shall be used to pay the benefit; creates a five-member board to administer the fund and determine
eligibility; provides for application deadlines; and provides that any funds remaining in the COVID-19 Death Benefit Fund on July 1, 2023,
shall be transferred to the State General Fund.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE INCREASE $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law will result in an indeterminable but potentially significant expenditure increase associated with providing death benefit
payments to the beneficiary of any eligible employee of a publicly owned health care facility in Louisiana. Proposed law provides for
payment of a death benefit equal to three times the compensation received by the employee from the public healthcare facility in his final
year of employment, not to exceed $150,000 per employee. The potential expenditure exposure for the state will depend on the number
of employee deaths among eligible facilities and the prior year compensation received by the employee in his final year of employment.
This data is unavailable due to HIPPA restrictions but the exposure is potentially significant. The LFO assumes payment to eligible
beneficiaries will be pursuant to a future legislative appropriation into the COVID-19 Death Benefit Fund.
There is no central repository of data regarding the number of employees in eligible facilities that are deceased to date as a result of
COVID-19 or complications arising thereof. For informational purposes, the Louisiana Department of Health (LDH) reports a total of 173
facilities statewide that fall under its designation of “publicly owned healthcare facility” - primarily including Behavioral Health Services,
Hospitals, Rural Health Clinics, and Nursing Homes among others. These facilities vary widely in terms of size, number of employees and
client/patient counts. LDH reports that it is aware of one death of an employee in a state-owned facility. The LFO has not been able to
gather/corroborate data with regard to the number of employees in other publicly owned facilities that have died as a result of COVID-19.
Proposed law creates the COVID-19 Death Benefit Review Board to determine eligibility for death benefits and to administer the fund. The
Board is placed in the Office of the Governor, Division of Administration (DOA). Proposed law provides for membership (comprised of five
appointments meeting certain qualifications) but is silent with regard to potential compensation or reimbursement for travel or other
expenses. The LFO assumes these members are to serve without compensation. Otherwise, DOA may realize minimal expenditures
related to reimbursements as permitted in the official state Policy and Procedure Manual (PPM49).
Creating a new statutory dedication within the state treasury will result in a marginal workload increase for the Department of Treasury,
which can generally be absorbed within existing resources. However, to the extent other legislative instruments create new statutory
dedications, there may be material additional costs associated with the aggregate effort to administer these funds. The Treasury performs
fund accounting, financial reporting, banking and custodial functions for 404 special funds. When unable to absorb additional workload
with existing resources, the Treasury anticipates it will be required to add one T.O. position at a total personal services cost of
approximately $71,000, plus approximately $2,450 for a one-time purchase of office equipment. These expenditures are assumed to be
SGF in this fiscal note.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure. Proposed law creates the statutorily
dedicated COVID-19 Death Benefit Fund and provides that the fund shall be comprised of monies appropriated from the SGF to the
Medical Vendor Payments (MVP) budget unit. Any SGF repurposed from the MVP unit for this purpose will result in a dollar for dollar
reduction of monies available to MVP to pay associated expenditures.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
HB71 Original:
HB71 Engrossed:
HB71 Reengrossed: